Uchumi Supermarkets ecoicipates to receive Sh3 billion from the sale of its Lang’ata branch property. The property was before amassed by the Kenya Defence Forces (KDF) last year.
Uchumi is currently toiling to stay afloat, said a letter of award from the National Land Commission (NLC) to aid the transfer of the property will be ready by end of June.
However, the KDF said last year that it will acquire 3.7 acres on which Uchumi’s Lang’ata branch sits, adding a fresh twist to the ownership of the prime plot that is the subject of a court suit.
The NLC, on behalf of KDF, has been working on a paper that will renovate the land and buildings into military use since last year.
“Uchumi Supermarkets Plc is waiting for the letter of award. This is expected within the next 30 days. Creditors shall be notified in case of any variation to our projections,” said the retailer during a creditors’ meeting on Monday.
Revenue from the bargains are set to help pay the retailer’s debt. The company on the other hand carries the property at Sh806.6 million and says that the sale will leave it with a gain of Sh2.1 billion.
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Creditors had secured their loans using the asset include the government, which is claiming Sh1.3 billion, UBA Bank (Sh176 million), and ICDC (Sh115.9 million).
